Emmanuel OchayiNigeria experienced a slight dip in its crude oil production, falling to 1.42 million barrels per day (mbpd), as reported by the Organisation of Petroleum Exporting Countries (OPEC) for January 2024.
OPEC’s Monthly Oil Report for February 2024 unveiled this decline, indicating a reduction of 3,000 barrels per day (bpd) or 0.21% from December’s production of 1.422mbpd, as per secondary sources.
Although the Nigerian government had set a target of 1.78mbpd in its 2024 budget, the actual output fell short of this mark. President Bola Tinubu’s budget proposal had aimed for increased production levels.
Nigeria heavily relies on crude oil revenues, with the sector being a primary contributor to the nation’s finances.
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However, the recent decrease in production underscores the importance of diversification efforts to bolster the economy against fluctuations in oil prices and output.
While Nigeria experienced a decline, other OPEC members such as the United Arab Emirates, Saudi Arabia, and Venezuela saw an increase in crude oil production during the same period.
The overall crude production among the 12 OPEC nations averaged 26.34mbpd in January, showing a reduction of 350,000bpd compared to the previous month.
Furthermore, global oil supply witnessed a decrease in January, with preliminary data indicating a drop to an average of 101.8mbpd.
This decrease was mainly attributed to reductions in production from the United States and other Eurasian countries.
Despite the decline in Nigeria’s crude oil output, the country remains a significant player in the global oil market.
Efforts to enhance production efficiency and explore alternative revenue streams will be crucial for ensuring economic stability and growth in the face of fluctuating oil prices and production levels.
